1. California's Net Financial Position

This figure should be positive for healthy organizations. It’s derived by tallying the state government’s assets (monetary funds, investments, buildings, roadways, bridges, parks, etc.) and subtracting its obligations. The last positive number CA had was Gov. Pete Wilson’s last term with $1.5 billion in net assets.

CA now ranks among the worst states, just above Illinois, whose net position is a negative $68.3 billion, or $5,335 per person. Illinois’ finances are so bad, they’re telling lottery winners that they have to delay their payments.

In the 6 years following the Great Recession, CA’s gas tax revenue grew by $1.75 billion, while road spending remained stagnant (Board of Equalization Data).

5. CA's Business & Economic Competitiveness

CA has the nation’s highest income, sales and gas taxes, when cap and trade is included. CA also has the highest corporate tax in the Western United States and the 14th highest property tax. According to the Tax Foundation’s 2015 Facts and Figures (link is external), that puts California fourth in overall tax burden on a per capita basis.

For the 11th year in a row, CA was named the worst state for business in a survey of 500 CEOs by Chief Executive Magazine.

6. Budget Leftovers From Last Year

Medi-Cal Shortfall:CA is not reimbursing doctors enough for Medi-Cal visits. Therefore, doctors have stopped taking Medi-Cal patients. Rather than use $1.1 billion from this last year’s $7 billion increase in general fund spending from the year before to backfill the Medi-Cal system, the legislature instead tried to raise cigarette taxes by $2 per pack to fund this shortfall.

Unemployment Insurance Fund:In January 26, 2009, the California state government borrowed $10 billion from the federal government to cover its Unemployment Insurance Fund. As of June 3, 2015, it still owed $8 billion. The 2015 interest payment on the loan totaled $174.5 million. By leaving this unpaid, CA employers are now being forced to cover the payments through increased federal unemployment payroll taxes.